Game consoles outplaying iPhone, iPad in online video

Joseph O'Halloran ©RapidTVNews | 11-05-2012

In further confirmation of a growing trend, digital video viewing and ad consumption on Microsoft's Xbox 360 game console is beginning to edge out that from wireless devices such as the iPad, iPhone and Android devices.

Furthermore, according to research from video technology provider FreeWheel, digital video ad loads have defied their traditional post-Christmas seasonal softness in the first quarter of 2012 matching the ad spending patterns of the previous quarter. Fundamentally, the company believes that Video has broken out of the confines of traditional television to any time and place consumers want to view it.

The video provider says that this is the first time since 2010 that this has happened with advertisers demanding digital video ad inventory, and these spending patterns demonstrate increased “buy in.”

Mid-roll advertisements are growing at a much faster clip than pre-roll ads—namely, 115% compared with 45% year-over-year—signifying that long-form content is coming online overall and that publishers are making more mid-roll inventory available.

One of the dramatic stories, says Freewheel is that pre-roll, once considered the de-facto standard for digital video, is losing traction to mid-rolls, demonstrating the increase in advertiser usage of mid-rolls is showing the high value of ads that live within pods between segments of professional content. FreeWheel calculates that mid-rolls now comprise nearly one-quarter of all video ad views (23%), growing four percentage points from Q4 2011 alone. Consistent with reports from previous quarters, video ad completion rates continue to hold steady despite higher ad loads.

In terms of where video is being consumed, the FreeWheel Video Monetisation Report found that the Xbox has seen a strong rise of video view volume. In general the analysis showed that with the rise in sales of Internet-connected TVs and the high levels of household penetration of devices that can stream video content onto TVs—such as Xbox, PlayStation, Wii, Roku—there are entirely new avenues of digital video consumption, provided that streaming rights for the content are established.

The Xbox is the video delivery device to watch this year, garnering 28% of all non-PC/Mac video viewing in Q1 2012 and FreeWheel notes that the Xbox has higher household penetration rates than iPads, in 26% of all US households Yet for all this, the iPad continues to be a top on-demand video viewing device and comprises 27% of all non-PC/Mac video viewing. While Xbox 360 and iPad lead non-PC viewing rates, they still trail in terms of monetising video content; content producers are holding back on bringing new content on these devices and syndicating it broadly.